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Jack Henry & Associates, Inc. (JKHY) Intrinsic Value & Margin of Safety | SafetyMargin.io

Technology › Information Technology Services

Jack Henry & Associates, Inc. (JKHY) Stock Overview

Market Cap: $11.90B

Jack Henry & Associates, Inc. operates as a financial technology company that connects people and financial institutions through technology solutions and payment processing services. It operates through four segments: Core, Payments, Complementary, and Corporate and Other.

Mar 19, 2026$164.43

1Y -7.2%

Rewards

★Jack Henry & Associates, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★Jack Henry & Associates, Inc. scores 88/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.

Risks

⚠FCF yield of 2.8% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.

JKHY Key Valuation Metrics

Free Cash Flow

$335.26M

FCF Yield

2.82%

Trailing P/E

23.59

Forward P/E

23.61

ROIC

22.02%

ROE

20.69%

Gross Margin

43.84%

PEG Ratio

0.83

Debt / Equity

0.03

Interest Coverage

N/A

Net Debt / EBITDA

0.06

Dividend Yield

1.43%

JKHY Historical Fundamentals

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

JKHY $1 Retained Earnings Test

Market Value

$0.67

created per $1 retained

Mediocre Allocator

Earning Power

$1.40

created per $1 retained

Value Creator

Σ Retained

$736.5M

Δ Market Cap

+$496.6M

Δ Earning Power

+$1.03B

Buffett's "$1 Test": For every $1 retained, how much value did management create?
Market Value = market's verdict (mood-sensitive) · Earning Power = owner earnings / discount rate (mood-independent)

JKHY Discounted Cash Flow (DCF) Analysis

21.4% Overvalued

Price is 21.4% above estimated fair value

Current Price: $164.43

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $135.43

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Parameter	Min (Bear)Value	BaseValue	Max (Bull)Value
Initial Cash Flow
Growth Rate (Yr 1-5)	%	%	%
Growth Rate (Yr 6-10)	%	%	%
Terminal Growth Rate	%	%	%
Discount Rate	%	%	%
	Bear Case $102.00 Implied EV: $7.42B	Base Case $135.43 Implied EV: $9.84B	Bull Case $165.80 Implied EV: $12.04B

Reverse DCF — Market-Implied Growth

What growth rate is the market pricing in at $164?

+11.4%

Market-Implied Owner Earnings Growth

Standard FCF implies +15.6%

The market implies +11.4% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +15.6%, reflecting heavy growth investment.

JKHY Economic Moat Score

88/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

JKHY Forensic Accounting

-2.49

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

JKHY Management & Board

Mr. Gregory R. Adelson

CEO, President & Director · Age 61

$1.71M

total pay

Ms. Mimi L. Carsley

CFO & Treasurer · Age 55

$1.08M

total pay

Mr. Shanon G. McLachlan

Senior VP, Executive Officer & COO

$876,125

total pay

Mr. Craig Keith Morgan

Chief Legal Officer & Secretary · Age 49

$869,950

total pay

Ms. Renee A. Swearingen

Senior VP, Chief Accounting Officer & Assistant Treasurer · Age 56

Mr. Benjamin Metz

VP and Chief Digital & Technology Officer

Mr. Dennis McDonald

VP & Chief Information and Security Officer

Mr. Vance Sherard C.F.A.

Vice President of Investor Relations

Mr. Michael Carnovali

Chief Risk & Compliance Officer

Mark Folk

Director of Corporate Communications

JKHY Ownership

Insiders 0.6%Institutions 104.5%

No. of Institutional Holders1,097

High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

JKHY Insider Buying Activity

0

Buys (3M)

0

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

JKHY Insider Selling Activity

0

Sells (3M)

7

Sells (12M)

Total value (12M): $8.34M

FOSS DAVID B

Director

$3.50M

@ $174.92 · 2025-12-01

MCLACHLAN SHANON G.

Chief Operating Officer

$36,508

@ $160.83 · 2025-11-10

FOSS DAVID B

Director

$966,878

@ $167.28 · 2025-08-04

SWEARINGEN RENEE ANN

Officer

$180,891

@ $179.10 · 2025-05-13

MCLACHLAN SHANON G.

Chief Operating Officer

$44,137

@ $179.42 · 2025-05-13

FOSS DAVID B

Officer and Director

$2.71M

@ $180.74 · 2025-05-12

MORGAN CRAIG KEITH

General Counsel

$900,816

@ $180.16 · 2025-05-12

FOSS DAVID B

Officer and Director

$3.22M

@ $171.32 · 2024-11-19

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

JKHY 🎭 Mr. Market's Mood

😐Neutral(49/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

JKHY ⚖️ Buffett Signal

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (49)

JKHY Investment Checklist & Notes

Do I understand this business?

Does it have a durable competitive advantage (moat)?

Is management honest and competent?

Is management allocating capital rationally?

Is the price reasonable (margin of safety)?

Is this within my circle of competence?

Auto-saved • Last updated: 3/20/2026, 4:32:17 AM

JKHY Insider Buying Activity

0

Buys (3M)

0

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

JKHY Insider Selling Activity

0

Sells (3M)

7

Sells (12M)

Total value (12M): $8.34M

FOSS DAVID B

Director

$3.50M

@ $174.92 · 2025-12-01

MCLACHLAN SHANON G.

Chief Operating Officer

$36,508

@ $160.83 · 2025-11-10

FOSS DAVID B

Director

$966,878

@ $167.28 · 2025-08-04

SWEARINGEN RENEE ANN

Officer

$180,891

@ $179.10 · 2025-05-13

MCLACHLAN SHANON G.

Chief Operating Officer

$44,137

@ $179.42 · 2025-05-13

FOSS DAVID B

Officer and Director

$2.71M

@ $180.74 · 2025-05-12

MORGAN CRAIG KEITH

General Counsel

$900,816

@ $180.16 · 2025-05-12

FOSS DAVID B

Officer and Director

$3.22M

@ $171.32 · 2024-11-19

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

JKHY Investment Checklist & Notes

Do I understand this business?

Does it have a durable competitive advantage (moat)?

Is management honest and competent?

Is management allocating capital rationally?

Is the price reasonable (margin of safety)?

Is this within my circle of competence?

Auto-saved • Last updated: 3/20/2026, 4:32:17 AM